Bank bonds provide a steady stream of fixed income payments, typically in the form of interest, known as coupon payments. This predictable cash flow can be an attractive feature for income-seeking investors, retirees, and those looking for a consistent source of returns.
So, what exactly is a 401(k), and why is it such a big deal in the world of retirement planning? Well, think of it as your personal savings vessel, tailor-made to sail you smoothly into your retirement sunset. Named after the section of the U.S. tax code that brought it into existence, the 401(k) allows you to save and invest a portion of your paycheck before taxes are taken out. This pre-tax advantage means you can grow your retirement nest egg more effectively, as your investments have the potential to compound over the years without the immediate tax bite.
